By:  Bivins, Armbrister, Wentworth                    S.B. No. 1547
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the collection of the tax on motor fuels; providing
 1-2     penalties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 153.001, Tax Code, is amended by amending
 1-5     Subdivisions (8) and (19) and adding Subdivisions (28) through (36)
 1-6     to read as follows:
 1-7                 (8)  "Diesel tax prepaid user" means a person:
 1-8                       (A)  whose purchases of diesel fuel are
 1-9     predominantly for agricultural nonhighway use;
1-10                       (B)  whose only diesel-powered motor vehicles are
1-11     passenger cars or light trucks; and
1-12                       (C)  who elects to prepay an annual diesel fuel
1-13     tax to the comptroller on each diesel-powered motor vehicle.
1-14                 (19)  "Motor fuel" includes gasoline, diesel fuel,
1-15     liquefied gas, and other products that are offered for sale, sold,
1-16     or used [usable] as propellants of a motor vehicle.
1-17                 (28)  "Blended fuel" means a mixture composed of
1-18     gasoline or diesel fuel and another liquid produced by a blending
1-19     process, other than a de minimis amount of a product such as
1-20     carburetor detergent or oxidation inhibitor, that can be offered
1-21     for sale, sold, or used as a fuel in a motor vehicle.
1-22                 (29)  "Blending" means the mixing together of one or
1-23     more products with other products to produce a product that is
1-24     offered for sale, sold, or used as a motor fuel.  The term does not
 2-1     include the blending that may occur during the refining process by
 2-2     the original refiner of crude petroleum or the commingling of
 2-3     products during transportation in a pipeline.
 2-4                 (30)  "Diversion number" means the number assigned by
 2-5     the comptroller, or by a person to whom the comptroller delegates
 2-6     or appoints the authority to assign the number, that relates to a
 2-7     single cargo tank delivery of motor fuel that is diverted from the
 2-8     original destination state printed on the shipping document.
 2-9                 (31)  "Dyed diesel fuel" means diesel fuel that is
2-10     required to be dyed under United States Environmental Protection
2-11     Agency and Internal Revenue Service rules or in accordance with
2-12     other subsequent requirements prescribed by the agency or service,
2-13     including any invisible marker requirements.
2-14                 (32)  "Export" means to deliver motor fuel to a point
2-15     outside this state.  For purposes of this definition, motor fuel
2-16     delivered outside this state:
2-17                       (A)  by or for the seller constitutes an export
2-18     by the seller; and
2-19                       (B)  by or for the purchaser constitutes an
2-20     export by the purchaser.
2-21                 (33)  "Import" means to deliver motor fuel to a point
2-22     inside this state from a point outside this state.  For purposes of
2-23     this definition, motor fuel delivered into this state from outside
2-24     this state:
2-25                       (A)  by or for the seller constitutes an import
2-26     by the seller; and
 3-1                       (B)  by or for the purchaser constitutes an
 3-2     import by the purchaser.
 3-3                 (34)  "Import verification number" means the number
 3-4     assigned by the comptroller, or by a person to whom the comptroller
 3-5     delegates or appoints the authority to assign the number, that
 3-6     relates to a single cargo tank delivery into this state from
 3-7     another state after a request for an assigned number by an importer
 3-8     or by the common or contract carrier carrying taxable motor fuel
 3-9     into this state for the account of an importer.
3-10                 (35)  "Shipping document" means a delivery document
3-11     issued by a terminal or bulk plant operator in conjunction with the
3-12     sale, transfer, or removal of motor fuel from the terminal or bulk
3-13     plant.
3-14                 (36)  "Undyed diesel fuel" means diesel fuel that is
3-15     not subject to the United States Environmental Protection Agency
3-16     requirements or has not been dyed in accordance with the Internal
3-17     Revenue Service fuel dying provisions.
3-18           SECTION 2.  Subsection (a), Section 153.003, Tax Code, is
3-19     amended to read as follows:
3-20           (a)  All common and contract carriers operating in this state
3-21     shall keep for four years, open to inspection by the comptroller, a
3-22     complete and separate record of each intrastate and interstate
3-23     transportation of motor fuel.  The records of each intrastate and
3-24     interstate transportation of motor fuel required under Subsection
3-25     (b) shall be compiled into a report and supplements in a form or
3-26     manner determined by the comptroller.  On or before the 25th day of
 4-1     the month following the end of each calendar quarter, a common or
 4-2     contract carrier shall file a report showing complete and detailed
 4-3     information on the transportation of motor fuel during the
 4-4     preceding quarter.  The report must be executed by the common or
 4-5     contract carrier or a representative of the carrier, and the
 4-6     penalties provided by this chapter apply to any violation relating
 4-7     to the report.  The comptroller by rule shall determine the
 4-8     registration requirements for common or contract carriers
 4-9     transporting motor fuel.
4-10           SECTION 3.  Subsection (d), Section 153.004, Tax Code, is
4-11     amended to read as follows:
4-12           (d)  Each person, other than a common carrier transporting
4-13     motor fuel under this chapter, shall also carry a copy of the
4-14     supplier, distributor, jobber, dyed diesel fuel bonded user, or
4-15     agricultural bonded user permit, or proof of tax payment on the
4-16     motor fuel being transported, unless the person is an end user
4-17     transporting the person's own motor fuel purchased under a signed
4-18     statement as provided by Section 153.205.
4-19           SECTION 4.  Section 153.006, Tax Code, is amended by adding
4-20     Subsection (e) to read as follows:
4-21           (e)  The comptroller may revoke a distributor's or supplier's
4-22     permit if the distributor or supplier purchases, for export, motor
4-23     fuel in this state on which the tax imposed by this chapter has not
4-24     been paid and subsequently diverts or causes the fuel to be
4-25     diverted to a destination in this state or to a destination in
4-26     another state or country other than the originally designated state
 5-1     or country without first obtaining a diversion number.
 5-2           SECTION 5.  Section 153.010, Tax Code, is amended to read as
 5-3     follows:
 5-4           Sec. 153.010.  AUTHORITY TO STOP AND EXAMINE.  In order to
 5-5     enforce the provisions of this chapter, the comptroller or a peace
 5-6     officer may stop a motor vehicle that appears to be operating with
 5-7     or transporting motor fuel in order to examine the shipping
 5-8     document, cargo manifest, or invoices required to be carried,
 5-9     examine a permit or copy of a permit that may be required to be
5-10     carried, take samples from the fuel supply or cargo tanks, and make
5-11     any other investigation that could reasonably be made to determine
5-12     whether the taxes have been paid or accounted for by a distributor,
5-13     supplier, dealer, dyed diesel fuel bonded user, agricultural bonded
5-14     user, jobber, or any person required to be so permitted.  The
5-15     comptroller, a peace officer, an employee of the attorney general's
5-16     office, an employee of the Texas Natural Resource Conservation
5-17     Commission, or an employee of the Department of Agriculture may
5-18     take samples of motor fuel from any storage tank or container to:
5-19                 (1)  determine if the fuel contains hazardous waste or
5-20     is adulterated; or
5-21                 (2)  allow the comptroller to determine whether taxes
5-22     on the fuel have been paid or accounted for to this state.
5-23           SECTION 6.  Subsection (a), Section 153.013, Tax Code, is
5-24     amended to read as follows:
5-25           (a)  A distributor, supplier, dealer, interstate trucker,
5-26     jobber, dyed diesel fuel bonded user, or agricultural bonded user
 6-1     who fails to keep a record, issue an invoice, or file a report
 6-2     required by this chapter, is presumed to have sold or used for
 6-3     taxable purposes all motor fuel shown by an audit by the
 6-4     comptroller to have been sold to the distributor, supplier, dealer,
 6-5     interstate trucker, jobber, or user.  Motor fuel unaccounted for is
 6-6     presumed to have been sold or used for taxable purposes.  The
 6-7     comptroller may fix or establish the amount of taxes, penalties,
 6-8     and interest due the state from the records of deliveries or from
 6-9     any records or information available to him.  If a tax claim, as
6-10     developed from this procedure, is not paid, after the opportunity
6-11     to request a redetermination, the claim and any audit made by the
6-12     comptroller or any report filed by the distributor, supplier,
6-13     dealer, interstate trucker, jobber, dyed diesel fuel bonded user,
6-14     or agricultural bonded user, are evidence in any suit or judicial
6-15     proceedings filed by the attorney general, and are prima facie
6-16     evidence of the correctness of the claim or audit.  A prima facie
6-17     presumption of the correctness of the claim may be overcome at the
6-18     trial by evidence adduced by the distributor, supplier, dealer,
6-19     interstate trucker, jobber, or user.
6-20           SECTION 7.  Subchapter A, Chapter 153, Tax Code, is amended
6-21     by adding Section 153.018 to read as follows:
6-22           Sec. 153.018.  IMPORTATION AND EXPORTATION OF MOTOR FUEL.
6-23     (a)  A person may not import motor fuel to a destination in this
6-24     state or export motor fuel to a destination outside this state by
6-25     any means unless the person possesses a shipping document for that
6-26     fuel created by the terminal or bulk plant at which the fuel was
 7-1     received.  The shipping document must include:
 7-2                 (1)  the name and physical address of the terminal or
 7-3     bulk plant from which the motor fuel was received for import or
 7-4     export;
 7-5                 (2)  the name of the carrier transporting the motor
 7-6     fuel;
 7-7                 (3)  the date the motor fuel was loaded;
 7-8                 (4)  the type of motor fuel;
 7-9                 (5)  the number of gallons:
7-10                       (A)  in temperature-adjusted gallons if purchased
7-11     from a terminal for export or import; or
7-12                       (B)  in temperature-adjusted gallons or in gross
7-13     gallons if purchased from a bulk plant;
7-14                 (6)  the destination of the motor fuel as represented
7-15     by the purchaser of the motor fuel and the number of gallons of the
7-16     fuel to be delivered, if delivery is to only one state;
7-17                 (7)  the name, federal employer identification number,
7-18     permit number, and physical address of the purchaser of the motor
7-19     fuel;
7-20                 (8)  the name of the person responsible for paying the
7-21     tax imposed by this chapter, as given to the terminal by the
7-22     purchaser if different from the permitted supplier or distributor;
7-23     and
7-24                 (9)  any other information that, in the opinion of the
7-25     comptroller, is necessary for the proper administration of this
7-26     chapter.
 8-1           (b)  The terminal or bulk plant shall provide the shipping
 8-2     documents to the importer or exporter.
 8-3           (c)  If motor fuel is to be delivered to more than one state,
 8-4     the terminal shall document the split loads by issuing shipping
 8-5     documents that list the destination state of each portion of the
 8-6     motor fuel.
 8-7           (d)  A terminal, a bulk plant, the carrier, the permitted
 8-8     distributor or supplier, and the person that received the motor
 8-9     fuel shall:
8-10                 (1)  retain a copy of the shipping document until at
8-11     least the fourth anniversary of the date the fuel is received; and
8-12                 (2)  provide a copy of the document to the comptroller
8-13     or any law enforcement officer not later than the 10th working day
8-14     after the date a request for the copy is received.
8-15           (e)  An importer or exporter shall keep in the person's
8-16     possession the shipping document issued by the terminal or bulk
8-17     plant when transporting motor fuel imported into this state or for
8-18     export from this state.  The importer or exporter shall show the
8-19     document to the comptroller or a peace officer on request.  The
8-20     comptroller may delegate authority to inspect the document to other
8-21     governmental agencies.  The importer or exporter shall provide a
8-22     copy of the shipping document to the person that receives the fuel
8-23     when it is delivered.
8-24           (f)  The importer or exporter may deliver motor fuel only to
8-25     the destination state or states indicated on the shipping document.
8-26           (g)  An importer or exporter who wants to divert the delivery
 9-1     of a single cargo tank of motor fuel from the destination state
 9-2     printed on the shipping document must obtain a diversion number
 9-3     from the comptroller before diverting the delivery.  The importer,
 9-4     exporter, or common or contract carrier must write the diversion
 9-5     number on the shipping document issued for the fuel.  A diversion
 9-6     number is required for each diverted delivery.  The comptroller may
 9-7     appoint a person to assign diversion numbers or may delegate that
 9-8     authority to another person.
 9-9           (h)  An importer that acquires motor fuel for import by cargo
9-10     tank must obtain an import verification number from the comptroller
9-11     before importing the motor fuel.  The importer must write the
9-12     import verification number on the shipping document issued for the
9-13     fuel.  The importer must obtain a separate import confirmation
9-14     number for each cargo tank delivery of motor fuel into this state.
9-15     The comptroller may appoint a person to assign import verification
9-16     numbers or may delegate that authority to another person.
9-17           (i)  Each terminal shall post a notice in a conspicuous
9-18     location proximate to the point of receipt of shipping papers that
9-19     describes the duties of importers and exporters under this section.
9-20     The comptroller may prescribe the language, type, style, and format
9-21     of the notice.
9-22           SECTION 8.  Subsection (a), Section 153.112, Tax Code, is
9-23     amended to read as follows:
9-24           (a)  A distributor's permit is permanent and is valid so long
9-25     as the permittee has in force and effect the required bond or
9-26     security and furnishes timely reports and supplements as required,
 10-1    or until the permit is surrendered by the holder or canceled by the
 10-2    comptroller.  The comptroller shall [may] cancel a distributor's
 10-3    permit if no purchase, sale, or use of gasoline has been reported
 10-4    by the distributor for the prior nine [12] months.
 10-5          SECTION 9.  Subsection (a), Section 153.117, Tax Code, is
 10-6    amended to read as follows:
 10-7          (a)  A distributor shall keep:
 10-8                (1)  a record showing the number of gallons of:
 10-9                      (A) [(1)]  all gasoline inventories on hand at
10-10    the first of each month;
10-11                      (B) [(2)]  all gasoline refined, compounded, or
10-12    blended;
10-13                      (C) [(3)]  all gasoline purchased or received,
10-14    showing the name of the seller and date of each purchase or
10-15    receipt;
10-16                      (D) [(4)]  all gasoline sold, distributed, or
10-17    used, showing the name of the purchaser and the date of the sale or
10-18    use; and
10-19                      (E) [(5)]  all gasoline lost by fire or other
10-20    accident; and
10-21                (2)  an itemized statement showing by load the number
10-22    of gallons of all gasoline:
10-23                      (A)  received during the preceding calendar month
10-24    for export and the location of the loading;
10-25                      (B)  exported from this state by destination
10-26    state or country; and
 11-1                      (C)  imported during the preceding calendar month
 11-2    by destination state or country.
 11-3          SECTION 10.  Subsection (a), Section 153.118, Tax Code, is
 11-4    amended to read as follows:
 11-5          (a)  On or before the 25th day of each month, a distributor
 11-6    or other person liable to this state for payment of the tax imposed
 11-7    under this chapter shall file all reports and supplements as
 11-8    required by the comptroller, and remit the amount of tax required
 11-9    to be collected during the preceding month.  The report shall be
11-10    executed by the distributor, the distributor's [or his]
11-11    representative, or any other person required to report and shall be
11-12    filed with the comptroller in a manner or on a form provided or
11-13    approved by the comptroller, containing complete and detailed
11-14    information not inconsistent with the requirements of this chapter
11-15    of gasoline transactions.  A distributor required to file a report
11-16    under this section who has not sold or used any gasoline during the
11-17    reporting period shall file with the comptroller the report setting
11-18    forth the facts or information.  The failure of a distributor or
11-19    other person to obtain forms or software from the comptroller is no
11-20    excuse for the failure to file a report containing all the
11-21    information required to be reported.
11-22          SECTION 11.  Section 153.203, Tax Code, is amended to read as
11-23    follows:
11-24          Sec. 153.203.  EXCEPTIONS.  The tax imposed by this
11-25    subchapter does not apply to:
11-26                (1)  diesel fuel delivered by a permitted supplier to a
 12-1    common or contract carrier, oceangoing vessel (including ship,
 12-2    tanker, or boat), or barge for export from this state, if the
 12-3    diesel fuel is moved forthwith outside this state;
 12-4                (2)  diesel fuel sold by a permitted supplier to the
 12-5    federal government for its exclusive use;
 12-6                (3)  diesel fuel sold or delivered by a permitted
 12-7    supplier to another permitted supplier or to the bulk storage
 12-8    facility of an agricultural bonded user, or dyed diesel fuel sold
 12-9    or delivered by a permitted supplier to the bulk storage facility
12-10    of a dyed diesel fuel bonded user, to the bulk storage facility of
12-11    a diesel tax prepaid user, or to a purchaser who provides a signed
12-12    statement as provided by Section 153.205 of this code, but not
12-13    including a delivery of tax-free diesel fuel into the fuel supply
12-14    tanks of a motor vehicle, except for a motor vehicle owned by the
12-15    federal government;
12-16                (4)  diesel fuel sold or delivered by a permitted
12-17    supplier into the storage facility of a permitted aviation fuel
12-18    dealer, from which diesel fuel will be sold or delivered solely
12-19    into the fuel supply tanks of aircraft or aircraft servicing
12-20    equipment;
12-21                (5)  diesel fuel sold or delivered by a permitted
12-22    supplier into fuel supply tanks of railway engines, motorboats, or
12-23    refrigeration units or other stationary equipment powered by a
12-24    separate motor from a separate fuel supply tank;
12-25                (6)  kerosene when delivered by a permitted supplier
12-26    into a storage facility at a retail business from which all
 13-1    deliveries are exclusively for heating, cooking, lighting, or
 13-2    similar nonhighway use;
 13-3                (7)  diesel fuel sold or delivered by one aviation fuel
 13-4    dealer to another aviation fuel dealer who will deliver the diesel
 13-5    fuel exclusively into the supply tanks of aircraft or aircraft
 13-6    servicing equipment;
 13-7                (8)  diesel fuel sold by a permitted supplier to a
 13-8    public school district in this state for its exclusive use; or
 13-9                (9)  diesel fuel sold by a permitted supplier to a
13-10    commercial transportation company that provides public school
13-11    transportation services to a school district under Section 34.008,
13-12    Education Code, and used by the company exclusively to provide
13-13    those services.
13-14          SECTION 12.  Section 153.205, Tax Code, is amended by
13-15    amending Subsections (a), (b), (c), (e), (i), and (j) and adding
13-16    Subsection (k) to read as follows:
13-17          (a)  The first sale or use of diesel fuel in this state is
13-18    taxable, except that sales [the sale] of dyed diesel fuel, or of
13-19    undyed diesel fuel if the fuel will be used for an agricultural
13-20    purpose, may be made without collecting the tax if the purchaser
13-21    furnishes to a permitted supplier a signed statement, including an
13-22    end user number or agricultural user exemption number issued by the
13-23    comptroller that stipulates that:
13-24                (1)  the purchaser does not operate any diesel-powered
13-25    motor vehicles on the public highway;
13-26                (2)  all of the diesel fuel will be consumed by the
 14-1    purchaser and no diesel fuel purchased on a signed statement will
 14-2    be resold; and
 14-3                (3)  none of the diesel fuel purchased in this state
 14-4    will be delivered or permitted by the purchaser to be delivered
 14-5    into fuel supply tanks of motor vehicles.
 14-6          (b)  A person may not make a tax-free purchase of any diesel
 14-7    fuel under this section using a signed statement:
 14-8                (1)  for the purchase of more than 3,000 gallons of
 14-9    dyed or undyed diesel fuel in a single transaction; or
14-10                (2)  in a calendar month in which the person has
14-11    previously purchased more than 10,000 gallons of dyed or undyed
14-12    diesel fuel from all sources.
14-13          (c)  The signed statement and end user number or agricultural
14-14    user exemption number from the purchaser relieves the permitted
14-15    supplier from the burden of proof that the sale of diesel fuel was
14-16    not taxable to the purchaser and remains in effect unless:
14-17                (1)  the statement is revoked in writing by the
14-18    purchaser or supplier;
14-19                (2)  the comptroller notifies the supplier in writing
14-20    that the purchaser may no longer make tax-free purchases; or
14-21                (3)  the supplier is put on notice by making taxable
14-22    sales of diesel fuel to a purchaser who has previously submitted a
14-23    signed statement to this supplier.
14-24          (e)  A taxable use of any part of the dyed or undyed diesel
14-25    fuel purchased under a signed statement shall, in addition to any
14-26    criminal penalty, forfeit the right of the person to purchase dyed
 15-1    or undyed diesel fuel tax free for a period of one year from the
 15-2    date of the offense, and any tax, interest, and penalty found to be
 15-3    due through false or erroneous execution or continuance of a
 15-4    promissory statement by the purchaser, if assessed to the supplier,
 15-5    is a debt of the purchaser to the supplier until paid, and is
 15-6    recoverable at law in the same manner as the purchase price of the
 15-7    fuel.  The person may, however, claim a refund of the tax paid on
 15-8    any undyed diesel fuel used for nonhighway purposes under Section
 15-9    153.222 [of this code].
15-10          (i)  A permitted supplier may not make a tax-free sale of
15-11    dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
15-12    to a purchaser using a signed statement:
15-13                (1)  for the sale of more than 3,000 gallons of dyed or
15-14    undyed diesel fuel in a single transaction; or
15-15                (2)  in a calendar month in which the supplier has
15-16    previously sold more than 10,000 gallons of dyed or undyed diesel
15-17    fuel to the purchaser.
15-18          (j)(1)  A sale of dyed diesel fuel, or undyed diesel fuel for
15-19    agricultural purposes, may be made without collecting tax from [to]
15-20    a purchaser who operates one or more motor vehicles on the public
15-21    highway and who furnishes to a permitted supplier a signed
15-22    statement and end user number or agricultural user exemption number
15-23    only as provided in this subsection.
15-24                (2)  The statement must stipulate that all the dyed or
15-25    undyed diesel fuel will be consumed by the purchaser for purposes
15-26    other than operating a motor vehicle on the public highway and that
 16-1    no dyed or undyed diesel fuel purchased on a signed statement will
 16-2    be resold or delivered into the fuel supply tanks of a motor
 16-3    vehicle.
 16-4                (3)  Diesel fuel which may be sold without collection
 16-5    of tax under this subsection must be of a type that may not be
 16-6    legally used by the purchaser for the operation of a motor vehicle
 16-7    on the public highway under state or federal law.
 16-8                (4)  Subsections (a), (c)(3), and (d) of this section
 16-9    do not apply to sales of fuel under this subsection.
16-10          (k)  A person who wants to use a signed statement to purchase
16-11    dyed diesel fuel must apply to the comptroller for an end user
16-12    number to be used in conjunction with a signed statement.  A person
16-13    who wants to use a signed statement to purchase dyed or undyed
16-14    diesel fuel for agricultural purposes must apply to the comptroller
16-15    for an agricultural user exemption number to be used in conjunction
16-16    with a signed statement.  A person may not make a tax-free sale of
16-17    any diesel fuel to a purchaser using a signed statement unless the
16-18    purchaser has an end user number or agricultural user exemption
16-19    number issued by the comptroller under this subsection.
16-20          SECTION 13.  Subsection (i), Section 153.206, Tax Code, is
16-21    amended to read as follows:
16-22          (i)  A dyed diesel fuel bonded user, an agricultural bonded
16-23    user, or a permitted interstate trucker is entitled to deduct
16-24    one-half of one percent of the taxable gallons of diesel fuel on
16-25    payment of the taxes to this state for the expense of
16-26    recordkeeping, reporting, and remitting the tax.
 17-1          SECTION 14.  Subsection (a), Section 153.207, Tax Code, is
 17-2    amended to read as follows:
 17-3          (a)  A supplier, dyed diesel fuel bonded user, agricultural
 17-4    bonded user, interstate trucker, diesel tax prepaid user, aviation
 17-5    fuel dealer, or diesel fuel jobber shall file an application with
 17-6    the comptroller for one of the nonassignable permits provided for
 17-7    in this subchapter.
 17-8          SECTION 15.  Subsection (b), Section 153.208, Tax Code, is
 17-9    amended to read as follows:
17-10          (b)  A supplier's permit authorizes a person to sell tax-free
17-11    diesel fuel to:
17-12                (1)  another supplier;
17-13                (2)  a dyed diesel fuel bonded user or agricultural
17-14    bonded user;
17-15                (3)  an aviation fuel dealer;
17-16                (4)  a diesel prepaid user if delivered into his bulk
17-17    storage facilities only; and
17-18                (5)  a person issuing a signed statement.
17-19          SECTION 16.  Section 153.209, Tax Code, is amended to read as
17-20    follows:
17-21          Sec. 153.209.  DYED DIESEL FUEL BONDED USER AND AGRICULTURAL
17-22    BONDED USER PERMITS [PERMIT].  (a)  A dyed diesel fuel bonded user
17-23    permit authorizes a user to purchase more than 10,000 gallons a
17-24    month of dyed diesel fuel for the user's own use [whose purchases
17-25    of diesel fuel are predominantly for nonhighway use to purchase
17-26    diesel fuel tax free from permitted suppliers and to report and pay
 18-1    taxes to this state on that part of the diesel fuel that is
 18-2    delivered into the fuel supply tanks of motor vehicles owned or
 18-3    operated by him].
 18-4          (b)  An agricultural bonded user permit authorizes a user to
 18-5    purchase more than 10,000 gallons of dyed and undyed diesel fuel
 18-6    for the user's own use for agricultural purposes only.
 18-7          SECTION 17.  Subsection (a), Section 153.210, Tax Code, is
 18-8    amended to read as follows:
 18-9          (a)  A diesel tax prepaid user permit authorizes a person
18-10    whose use of diesel fuel is predominantly for agricultural
18-11    nonhighway use, but who owns or operates one or more passenger cars
18-12    or light trucks only in the weight class shown in this section to
18-13    elect to prepay an annual tax on the fuel delivered from his own
18-14    tax-free storage rather than obtain an agricultural [a] bonded user
18-15    permit.  If he elects to obtain a diesel tax prepaid user permit,
18-16    he must prepay the tax at the rate prescribed for each motor
18-17    vehicle based on the class of registered gross weight.  A person
18-18    whose purchases of diesel fuel are predominantly for highway use
18-19    does not qualify for a diesel tax prepaid user permit.
18-20          SECTION 18.  Section 153.214, Tax Code, is amended to read as
18-21    follows:
18-22          Sec. 153.214.  SUPPLIER MAY PERFORM OTHER FUNCTIONS.  A
18-23    supplier may operate under the supplier's permit as a dyed diesel
18-24    fuel bonded user, agricultural bonded user, dealer, or aviation
18-25    fuel dealer without securing a separate permit, but is subject to
18-26    all other conditions, requirements, and liabilities imposed on
 19-1    those permittees.
 19-2          SECTION 19.  Subsection (a), Section 153.215, Tax Code, is
 19-3    amended to read as follows:
 19-4          (a)  A supplier's permit, a dyed diesel fuel bonded user
 19-5    permit, and an agricultural bonded user permit are [is] permanent
 19-6    and valid as long as the permittee has in force and effect the
 19-7    required bond or security and furnishes timely reports and
 19-8    supplements as required, or until the permit is surrendered by the
 19-9    holder or canceled by the comptroller.  The comptroller shall [may]
19-10    cancel a [supplier's or bonded user's] permit if no purchase, sale,
19-11    or use of diesel fuel has been reported by the permittee [supplier
19-12    or bonded user] for the prior nine [12] months.
19-13          SECTION 20.  Subsection (a), Section 153.217, Tax Code, is
19-14    amended to read as follows:
19-15          (a)  The comptroller, on or before December 20 of each
19-16    calendar year, shall mail or distribute to each supplier a printed
19-17    alphabetical list of permitted suppliers, dyed diesel fuel bonded
19-18    users, agricultural bonded users, aviation fuel dealers, and diesel
19-19    fuel jobbers.  A permitted supplier, an agricultural [a] bonded
19-20    user, and an aviation fuel dealer on the list are qualified to
19-21    purchase dyed or undyed diesel fuel tax free during the following
19-22    calendar year.  A dyed diesel fuel bonded user on the list is
19-23    qualified to purchase dyed diesel fuel tax free during the
19-24    following calendar year.  A diesel fuel jobber on the list is
19-25    qualified to purchase diesel fuel tax-paid during the following
19-26    calendar year.  A supplemental list of additions and deletions
 20-1    shall be delivered to each supplier each month.
 20-2          SECTION 21.  Subsections (a), (b), (c), and (j), Section
 20-3    153.218, Tax Code, are amended to read as follows:
 20-4          (a)  The comptroller shall determine the amount of security
 20-5    required of a supplier, dyed diesel fuel bonded user, agricultural
 20-6    bonded user, or diesel fuel jobber taking into consideration the
 20-7    amount of the tax that has or is expected to become due from the
 20-8    person, any past history of the person as a supplier, dyed diesel
 20-9    fuel bonded user, agricultural bonded user, or diesel fuel jobber,
20-10    and the necessity to protect the state against the failure to pay
20-11    the tax as it becomes due.
20-12          (b)  If it is determined that the posting of security is
20-13    necessary to protect the state, the comptroller may require a
20-14    supplier, dyed diesel fuel bonded user, or agricultural bonded user
20-15    to post a surety bond equal to two times the most amount of tax
20-16    that could accrue on tax-free diesel fuel purchased or acquired
20-17    during a reporting period.  A diesel fuel jobber shall post a bond
20-18    in an amount determined by the comptroller according to the past
20-19    payment history of the jobber.  The minimum bond for a supplier or
20-20    diesel fuel jobber is $30,000, and the maximum bond is $600,000.
20-21    The minimum bond for a dyed diesel fuel bonded user or agricultural
20-22    bonded user is $10,000, and the maximum bond is $600,000.  However,
20-23    if the comptroller determines there is undue risk of loss of tax
20-24    revenues, the comptroller may require one or more bonds or
20-25    securities in a total amount exceeding $600,000.
20-26          (c)  A supplier, dyed diesel fuel bonded user, agricultural
 21-1    bonded user, or diesel fuel jobber who has filed a bond or other
 21-2    security under this subchapter is exempted from the bond or other
 21-3    security requirements of this subchapter and is entitled, on
 21-4    request, to have the comptroller return, refund, or release the
 21-5    bond or security if in the judgment of the comptroller the person
 21-6    has for four consecutive years continuously complied with the
 21-7    conditions of the bond or other security filed under this
 21-8    subchapter.  However, if the comptroller determines that the
 21-9    revenues of the state would be jeopardized by the return, refund,
21-10    or release of the bond or security, the comptroller may elect not
21-11    to return, refund, or release the bond or security, and may
21-12    reimpose a requirement of a bond or other security as the
21-13    comptroller determines is necessary to protect the revenues of the
21-14    state.
21-15          (j)  The comptroller shall notify immediately the issuer of a
21-16    letter of credit of a final determination of the supplier's, dyed
21-17    diesel fuel bonded user's, or agricultural bonded user's delinquent
21-18    liability or a judgment secured in any action by this state to
21-19    recover diesel taxes, costs, penalties, and interest found to be
21-20    due this state by a supplier, dyed diesel fuel bonded user, or
21-21    agricultural bonded user in whose behalf the letter of credit was
21-22    issued.  The letter of credit allowed as security for the
21-23    remittance of taxes under this subchapter shall contain a statement
21-24    that the issuer agrees to respond to the comptroller's notice of
21-25    liability with amounts to satisfy the comptroller's delinquency
21-26    claim against the supplier, dyed diesel fuel bonded user, or
 22-1    agricultural bonded user.
 22-2          SECTION 22.  Section 153.219, Tax Code, is amended by
 22-3    amending Subsections (a) and (c) and adding Subsection (j) to read
 22-4    as follows:
 22-5          (a)  A supplier shall keep a record showing the number of
 22-6    gallons of:
 22-7                (1)  all diesel fuel inventories on hand at the first
 22-8    of each month;
 22-9                (2)  all diesel fuel refined, compounded, or blended;
22-10                (3)  all diesel fuel purchased or received, showing the
22-11    name of the seller, and the date of each purchase or receipt;
22-12                (4)  all diesel fuel sold, distributed, or used on
22-13    which the tax was paid, showing the name of each [the] purchaser
22-14    and the date of sale, distribution, or use; and
22-15                (5)  all diesel fuel lost by fire or other accident.
22-16          (c)  A dyed diesel fuel bonded user, an agricultural bonded
22-17    user, or other user with nonhighway equipment uses who files a
22-18    claim for a refund shall keep a record showing the number of
22-19    gallons of:
22-20                (1)  inventories of all diesel fuel on hand at the
22-21    first of each month;
22-22                (2)  all diesel fuel purchased or received, showing the
22-23    name of the seller and the date of each purchase;
22-24                (3)  all diesel fuel deliveries into the fuel supply
22-25    tanks of motor vehicles;
22-26                (4)  diesel fuel used for other purposes, showing the
 23-1    purpose for which used; and
 23-2                (5)  all diesel fuel lost by fire or other accident.
 23-3          (j)  A supplier shall keep:
 23-4                (1)  an itemized statement showing by load the number
 23-5    of gallons of all diesel fuel received during the preceding
 23-6    calendar month for export;
 23-7                (2)  an itemized statement showing by load the number
 23-8    of gallons of all diesel fuel exported from this state by
 23-9    destination state or country;
23-10                (3)  an itemized statement showing by load the number
23-11    of gallons of all diesel fuel imported during the preceding
23-12    calendar month by destination state or country;
23-13                (4)  an itemized statement differentiating between dyed
23-14    and undyed diesel fuel and showing by purchaser, end user number,
23-15    or agricultural user exemption number the number of gallons of dyed
23-16    and undyed diesel fuel sold tax free to a purchaser using a signed
23-17    statement in accordance with Section 153.205; and
23-18                (5)  an itemized statement showing by purchaser and
23-19    permit number the number of gallons of dyed and undyed diesel fuel
23-20    sold tax free to dyed diesel fuel bonded users and agricultural
23-21    bonded users.
23-22          SECTION 23.  Subsection (a), Section 153.220, Tax Code, is
23-23    amended to read as follows:
23-24          (a)  A delivery of diesel fuel into the fuel supply tanks of
23-25    a motor vehicle operated for commercial purposes and described by
23-26    Section 153.001(12) shall be evidenced by an invoice issued in
 24-1    duplicate by a dealer or an invoice or a distribution log issued by
 24-2    a dyed diesel fuel bonded user, an agricultural bonded user, or
 24-3    other user.
 24-4          SECTION 24.  Subsections (a) and (b), Section 153.221, Tax
 24-5    Code, are amended to read as follows:
 24-6          (a)  On or before the 25th day of each month, a supplier, a
 24-7    dealer required to collect the tax under Section 153.206(b), or a
 24-8    user required to pay the tax under Section 153.206(c) shall file a
 24-9    report of diesel fuel transactions or of diesel fuel delivered by a
24-10    user into the fuel tank of a motor vehicle owned or operated by the
24-11    user and such supplements as the comptroller may require and remit
24-12    the amount of tax required to be collected or to be paid during the
24-13    preceding month.  A report must be filed on a form or in a manner
24-14    provided by the comptroller and contain information required by the
24-15    comptroller, showing complete and detailed information of diesel
24-16    fuel transactions or use during the preceding month.  A supplier
24-17    required to file a report under this section who has not sold,
24-18    used, or distributed any diesel fuel during the reporting period
24-19    shall file with the comptroller the report setting forth the facts
24-20    or information.  The failure of a supplier, dealer, or user to
24-21    obtain forms or software from the comptroller is no excuse for the
24-22    failure to file a report.  The report must be executed by the
24-23    supplier, dealer, or user, or his representative and is subject to
24-24    the penalties provided in this chapter.
24-25          (b)  On or before the 25th day of the month following the end
24-26    of each calendar quarter, a dyed diesel fuel bonded user, an
 25-1    agricultural bonded user, or an interstate trucker shall file a
 25-2    report and remit the amount of tax due [except as provided by
 25-3    Subsection (d) of this section].  A report must be executed and
 25-4    filed with the comptroller and contain complete and detailed
 25-5    information on diesel fuel transactions during the preceding
 25-6    calendar quarter and other information required by the comptroller
 25-7    on forms or in a manner provided for that purpose.  A dyed diesel
 25-8    fuel bonded user, an agricultural bonded user, or an interstate
 25-9    trucker required to file a report under this section who has not
25-10    sold, used, or distributed any diesel fuel during the reporting
25-11    period shall file with the comptroller the report setting forth the
25-12    facts or information.  The failure of a dyed diesel fuel bonded
25-13    user, an agricultural bonded user, or an interstate trucker to
25-14    obtain forms or software from the comptroller is no excuse for the
25-15    failure to file a report containing all the information required to
25-16    be reported.
25-17          SECTION 25.  Subsection (d), Section 153.222, Tax Code, is
25-18    amended to read as follows:
25-19          (d)  If the quantity of diesel fuel used in Texas by
25-20    auxiliary power units or power take-off equipment on any motor
25-21    vehicle can be accurately measured while the motor vehicle is
25-22    stationary by any metering or other measuring device or method
25-23    designed to measure the fuel separately from fuel used to propel
25-24    the motor vehicle, the comptroller may approve and adopt the use of
25-25    any device as a basis for determining the quantity of diesel fuel
25-26    consumed in those operations for tax credit or tax refund.  If no
 26-1    separate metering device or other approved measuring method is
 26-2    provided, the following credit or refund procedures are authorized.
 26-3    A permitted supplier, a dyed diesel fuel bonded user, or an
 26-4    agricultural bonded user who operates diesel-powered motor vehicles
 26-5    equipped with a power take-off or a diesel-powered auxiliary power
 26-6    unit mounted on the motor vehicle and using the fuel supply tank of
 26-7    the motor vehicle may be allowed a deduction from the taxable
 26-8    gallons used in this state in each motor vehicle so equipped.  The
 26-9    comptroller shall determine the percentage of the deduction.  A
26-10    user who is required to pay the tax on diesel fuel used in motor
26-11    vehicles so equipped may file a claim for a refund not to exceed
26-12    the percentage allowed by the comptroller of the total taxable fuel
26-13    used in this state in each motor vehicle so equipped.
26-14          SECTION 26.  Subsection (a), Section 153.223, Tax Code, is
26-15    amended to read as follows:
26-16          (a)  A refund claim must be filed with the comptroller on
26-17    forms provided by the comptroller and show the date of filing, the
26-18    period covered in the claim, the number of gallons of diesel fuel
26-19    subject to refund, and other information required by the
26-20    comptroller.  A claim must be supported by one or more original
26-21    invoices issued to or by the claimant, or such other information as
26-22    the comptroller deems necessary.  A permitted supplier may not file
26-23    a claim for a refund of taxes paid by a purchaser of undyed diesel
26-24    fuel.
26-25          SECTION 27.  Subsection (d), Section 153.224, Tax Code, is
26-26    amended to read as follows:
 27-1          (d)  A permitted supplier, a dyed diesel fuel bonded user, or
 27-2    an agricultural bonded user that determines taxes were erroneously
 27-3    reported or that paid more taxes than were due this state because
 27-4    of a mistake of fact or law may take a credit on the supplier, dyed
 27-5    diesel fuel bonded user, or agricultural bonded user tax report on
 27-6    which the error has occurred and tax payment made to the
 27-7    comptroller.  The credit must be taken before the expiration of the
 27-8    applicable period of limitation as provided by Chapter 111.
 27-9          SECTION 28.  Subchapter C, Chapter 153, Tax Code, is amended
27-10    by adding Sections 153.226 through 153.230 to read as follows:
27-11          Sec. 153.226.  NOTICE REGARDING DYED DIESEL FUEL.  A notice
27-12    stating "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE
27-13    USE" must be:
27-14                (1)  provided by a permitted supplier to a person who
27-15    receives dyed diesel fuel;
27-16                (2)  provided by a seller of dyed diesel fuel to the
27-17    person's buyer; and
27-18                (3)  posted by a seller on a retail pump or bulk plant
27-19    at which the person sells dyed diesel fuel for use by the person's
27-20    buyers.
27-21          Sec. 153.227.  DYED DIESEL FUEL NOTICE REQUIRED ON SHIPPING
27-22    DOCUMENTS, BILLS OF LADING, AND INVOICES.  The form of notice
27-23    required by Sections 153.226(1) and (2) must be provided when the
27-24    dyed diesel fuel is removed or sold and must appear on each
27-25    shipping document, bill of lading, cargo manifest, and invoice
27-26    accompanying the sale or removal of the dyed diesel fuel.
 28-1          Sec. 153.228.  UNAUTHORIZED SALE OR USE OF DYED DIESEL FUEL.
 28-2    (a)  A person may not sell or hold for sale dyed diesel fuel for
 28-3    any use that the person knows or has reason to know is a taxable
 28-4    use of the diesel fuel.
 28-5          (b)  A person may not use or hold for use dyed diesel fuel
 28-6    for a use other than a nontaxable use if the person knows or has
 28-7    reason to know that the diesel fuel is dyed diesel fuel.
 28-8          Sec. 153.229.  ALTERATION OF DYE OR MARKER IN DYED DIESEL
 28-9    FUEL PROHIBITED.  A person, with the intent to evade payment of
28-10    tax, may not alter or attempt to alter the strength or composition
28-11    of a dye or marker in dyed diesel fuel.
28-12          Sec. 153.230.  USE OF DYED FUEL PROHIBITED.  (a)  A person
28-13    may not operate a motor vehicle on a public highway in this state
28-14    with taxable motor fuel that contains dye in the fuel supply tank
28-15    of the motor vehicle.
28-16          (b)  This section does not apply to a use of dyed fuel that
28-17    is  lawful under the Internal Revenue Code and implementing
28-18    regulations, including use in state and local government vehicles
28-19    or buses, unless otherwise prohibited by this chapter.
28-20          SECTION 29.  Subsection (a), Section 153.401, Tax Code, is
28-21    amended to read as follows:
28-22          (a)  If a person having a permit as a distributor, supplier,
28-23    dyed diesel fuel bonded user, agricultural bonded user, dealer, or
28-24    interstate trucker fails to file a report as required by this
28-25    chapter or fails to pay a tax imposed by this chapter when due, the
28-26    person forfeits five percent of the amount due as a penalty, and if
 29-1    the person fails to file the report or pay the tax within 30 days
 29-2    after the day on which the tax or report is due, the person
 29-3    forfeits an additional five percent.
 29-4          SECTION 30.  Section 153.402, Tax Code, is amended to read as
 29-5    follows:
 29-6          Sec. 153.402.  PROHIBITED ACTS; CIVIL PENALTIES.  (a)  A
 29-7    person forfeits to the state a civil penalty of not less than $25
 29-8    nor more than $200 if the person:
 29-9                (1)  refuses to stop and permit the inspection and
29-10    examination of a motor vehicle transporting or using motor fuel on
29-11    demand of a peace officer or the comptroller;
29-12                (2)  operates a motor vehicle in this state without a
29-13    valid interstate trucker's or a trip permit when the person is
29-14    required to hold one of those permits;
29-15                (3)  operates a liquefied gas-propelled motor vehicle
29-16    that is required to be licensed in Texas, including motor vehicles
29-17    equipped with dual carburetion, and does not display a current
29-18    liquefied gas tax decal or multistate fuels tax agreement decal;
29-19                (4)  makes a tax-free sale or delivery of liquefied gas
29-20    into the fuel supply tank of a motor vehicle that does not display
29-21    a current Texas liquefied gas tax decal;
29-22                (5)  makes a taxable sale or delivery of liquefied gas
29-23    without holding a valid dealer's permit;
29-24                (6)  makes a tax-free sale or delivery of liquefied gas
29-25    into the fuel supply tank of a motor vehicle bearing out-of-state
29-26    license plates;
 30-1                (7)  makes a delivery of liquefied gas into the fuel
 30-2    supply tank of a motor vehicle bearing Texas license plates and no
 30-3    Texas liquefied gas tax decal, unless licensed under a multistate
 30-4    fuels tax agreement;
 30-5                (8)  transports gasoline or diesel fuel in any cargo
 30-6    tank that has a connection by pipe, tube, valve, or otherwise with
 30-7    the fuel injector or carburetor or with the fuel supply tank
 30-8    feeding the fuel injector or carburetor of the motor vehicle
 30-9    transporting the product;
30-10                (9)  sells or delivers gasoline or diesel fuel from any
30-11    fuel supply tank connected with the fuel injector or carburetor of
30-12    a motor vehicle;
30-13                (10)  owns or operates a motor vehicle for which
30-14    reports or mileage records are required by this chapter without an
30-15    operating odometer or other device in good working condition to
30-16    record accurately the miles traveled;
30-17                (11)  furnishes a signed statement to a supplier for
30-18    purchasing diesel fuel of a type that may be legally used by the
30-19    purchaser for the operation of a motor vehicle on the public
30-20    highway under state or federal law tax free when he owns, operates,
30-21    or acquires a diesel-powered motor vehicle;
30-22                (12)  fails or refuses to comply with or violates a
30-23    provision of this chapter; [or]
30-24                (13)  fails or refuses to comply with or violates a
30-25    comptroller's rule for administering or enforcing this chapter;
30-26                (14)  is an importer who does not obtain an import
 31-1    verification number when required by this chapter; or
 31-2                (15)  purchases motor fuel for export, on which the tax
 31-3    imposed by this chapter has not been paid, and subsequently diverts
 31-4    or causes the motor fuel to be diverted to a destination in this
 31-5    state or any other state or country other than the originally
 31-6    designated state or country without first obtaining a diversion
 31-7    number.
 31-8          (b)  An importer or exporter that violates a requirement of
 31-9    Section 153.018 is liable to this state for a civil penalty of
31-10    $2,000 or five times the amount of the unpaid tax, whichever is
31-11    greater, for each violation.
31-12          (c)  A person receiving motor fuel who accepts a shipping
31-13    document that does not conform with the requirements of Section
31-14    153.018(a) is liable to this state for a civil penalty of $2,000 or
31-15    five times the amount of the unpaid tax, whichever is greater, for
31-16    each occurrence.
31-17          (d)  A person operating a bulk plant or terminal who issues a
31-18    shipping document that does not conform with the requirements of
31-19    Section 153.018(a) is liable to this state for a civil penalty of
31-20    $2,000 or five times the amount of the unpaid tax, whichever is
31-21    greater, for each occurrence.
31-22          (e)  A person operating a terminal or bulk plant who does not
31-23    post notice as required by Section 153.018(i) is liable to this
31-24    state for a civil penalty of $100 for each day the notice is not
31-25    posted as required by Section 153.018(i).
31-26          SECTION 31.  Section 153.403, Tax Code, is amended to read as
 32-1    follows:
 32-2          Sec. 153.403.  CRIMINAL OFFENSES.  Except as provided by
 32-3    Section 153.404 of this code, a person commits an offense if the
 32-4    person:
 32-5                (1)  refuses to stop and permit the inspection and
 32-6    examination of a motor vehicle transporting or using motor fuel on
 32-7    the demand of a peace officer or the comptroller;
 32-8                (2)  is required to hold a valid trip permit or
 32-9    interstate trucker's permit, but operates a motor vehicle in this
32-10    state without a valid trip permit or interstate trucker's permit;
32-11                (3)  operates a liquefied gas-propelled motor vehicle
32-12    that is required to be licensed in Texas, including a motor vehicle
32-13    equipped with dual carburetion, and does not display a current
32-14    liquefied gas tax decal or multistate fuels tax agreement decal;
32-15                (4)  transports gasoline or diesel fuel in any cargo
32-16    tank that has a connection by pipe, tube, valve, or otherwise with
32-17    the fuel injector or carburetor or with the fuel supply tank
32-18    feeding the fuel injector or carburetor of the motor vehicle
32-19    transporting the product;
32-20                (5)  sells or delivers gasoline or diesel fuel from a
32-21    fuel supply tank that is connected with the fuel injector or
32-22    carburetor of a motor vehicle;
32-23                (6)  owns or operates a motor vehicle for which reports
32-24    or mileage records are required by this chapter without an
32-25    operating odometer or other device in good working condition to
32-26    record accurately the miles traveled;
 33-1                (7)  as a diesel tax prepaid user fails to prepay the
 33-2    tax on every diesel-powered motor vehicle owned or operated by him;
 33-3                (8)  uses dyed diesel fuel, on which a tax is required
 33-4    to be paid, for the operation of a motor vehicle on a public
 33-5    highway;
 33-6                (9)  makes a tax-free sale or delivery of liquefied gas
 33-7    into the fuel supply tank of a motor vehicle that does not display
 33-8    a current Texas liquefied gas tax decal;
 33-9                (10) [(9)]  makes a sale or delivery of liquefied gas
33-10    on which the person knows the tax is required to be collected, if
33-11    at the time the sale is made the person does not hold a valid
33-12    dealer's permit;
33-13                (11) [(10)]  makes a tax-free sale or delivery of
33-14    liquefied gas into the fuel supply tank of a motor vehicle bearing
33-15    out-of-state license plates;
33-16                (12) [(11)]  makes a delivery of liquefied gas into the
33-17    fuel supply tank of a motor vehicle bearing Texas license plates
33-18    and no Texas liquefied gas tax decal, unless licensed under a
33-19    multistate fuels tax agreement;
33-20                (13) [(12)]  refuses to permit the comptroller or the
33-21    attorney general to inspect, examine, or audit a book or record
33-22    required to be kept by a distributor, supplier, dyed diesel fuel
33-23    bonded user, agricultural bonded user, dealer, interstate trucker,
33-24    aviation fuel dealer, jobber, common or contract carrier, or any
33-25    person required to hold a permit under this chapter;
33-26                (14) [(13)]  refuses to permit the comptroller or the
 34-1    attorney general to inspect or examine any plant, equipment,
 34-2    materials, or premises where motor fuel is produced, processed,
 34-3    stored, sold, delivered, or used;
 34-4                (15) [(14)]  refuses to permit the comptroller or the
 34-5    attorney general to measure or gauge the contents of or take
 34-6    samples from a storage tank or container on premises where motor
 34-7    fuel is produced, processed, stored, sold, delivered, or used;
 34-8                (16) [(15)]  is a distributor, dyed diesel fuel bonded
 34-9    user, agricultural bonded user, interstate trucker, or supplier and
34-10    fails or refuses to make or deliver to the comptroller a report
34-11    required by this chapter to be made and delivered to the
34-12    comptroller;
34-13                (17)  is an importer who does not obtain an import
34-14    verification number when required by this chapter;
34-15                (18)  purchases motor fuel for export, on which the tax
34-16    imposed by this chapter has not been paid, and subsequently diverts
34-17    or causes the motor fuel to be diverted to a destination in this
34-18    state or any other state or country other than the originally
34-19    designated state or country without first obtaining a diversion
34-20    number;
34-21                (19) [(16)]  conceals motor fuel with the intent of
34-22    engaging in any conduct proscribed by this chapter or refuses to
34-23    make sales of motor fuel on the volume-corrected basis prescribed
34-24    by this chapter;
34-25                (20) [(17)]  refuses, while transporting motor fuel, to
34-26    stop the motor vehicle he is operating when called on to do so by a
 35-1    person authorized to stop the motor vehicle;
 35-2                (21) [(18)]  refuses to surrender a motor vehicle and
 35-3    cargo for impoundment after being ordered to do so by a person
 35-4    authorized to impound the motor vehicle and cargo;
 35-5                (22) [(19)  transports motor fuel for which a cargo
 35-6    manifest is required to be carried without possessing or exhibiting
 35-7    on demand by an officer authorized to make the demand a cargo
 35-8    manifest containing the information required to be shown on the
 35-9    manifest;]
35-10                [(20)]  mutilates, destroys, or secretes a book or
35-11    record required by this chapter to be kept by a distributor,
35-12    supplier, dyed diesel fuel bonded user, agricultural bonded user,
35-13    dealer, interstate trucker, aviation fuel dealer, jobber, or person
35-14    required to hold a permit under this chapter;
35-15                (23) [(21)]  is a distributor, supplier, dyed diesel
35-16    fuel bonded user, agricultural bonded user, dealer, interstate
35-17    trucker, aviation fuel dealer, jobber, or other person required to
35-18    hold a permit under this chapter, or the agent or employee of one
35-19    of those persons and makes a false entry or fails to make an entry
35-20    in the books and records required under this chapter to be made by
35-21    the person or fails to retain a document as required by this
35-22    chapter;
35-23                (24) [(22)]  transports in any manner motor fuel under
35-24    a false cargo manifest or shipping document, or transports in any
35-25    manner motor fuel to a location without delivering at the same time
35-26    a shipping document relating to that shipment;
 36-1                (25) [(23)]  engages in a motor fuel transaction that
 36-2    requires that the person have a permit under this chapter without
 36-3    then and there holding the required permit;
 36-4                (26) [(24)]  makes and delivers to the comptroller a
 36-5    report required under this chapter to be made and delivered to the
 36-6    comptroller, if the report contains false information;
 36-7                (27) [(25)]  forges, falsifies, or alters an invoice
 36-8    prescribed by law;
 36-9                (28) [(26)]  makes any statement, knowing said
36-10    statement to be false, in a claim for a tax refund filed with the
36-11    comptroller;
36-12                (29) [(27)]  furnishes to a supplier a signed statement
36-13    for purchasing diesel fuel of a type that may be legally used by
36-14    the purchaser for the operation of a motor vehicle on the public
36-15    highway under state or federal law tax free when he owns, operates,
36-16    or acquires a diesel-powered motor vehicle;
36-17                (30) [(28)]  holds an aviation fuel dealer's permit and
36-18    makes a taxable sale or use of any gasoline or diesel fuel;
36-19                (31) [(29)]  fails to remit any tax funds collected by
36-20    a distributor, supplier, dyed diesel fuel bonded user, agricultural
36-21    bonded user, dealer, interstate trucker, jobber, or any other
36-22    person required to hold a permit under this chapter;
36-23                (32) [(30)]  makes a sale of diesel fuel tax free into
36-24    a storage facility of a person who:
36-25                      (A)  is not permitted as a supplier, as an
36-26    aviation fuel dealer, as a dyed diesel fuel bonded user, as an
 37-1    agricultural bonded user, or as a diesel tax prepaid user of diesel
 37-2    fuel; or
 37-3                      (B)  does not furnish to the permitted supplier a
 37-4    signed statement prescribed in Section 153.205 of this code;
 37-5                (33) [(31)]  makes a sale of gasoline tax free to any
 37-6    person who is not permitted as either a distributor or an aviation
 37-7    fuel dealer;
 37-8                (34) [(32)]  is a dealer who purchases any motor fuel
 37-9    tax free when not authorized to make a tax-free purchase under this
37-10    chapter; [or]
37-11                (35) [(33)]  is a dealer who purchases motor fuel with
37-12    the intent to evade any tax imposed by this chapter, or who accepts
37-13    a delivery of motor fuel by any means and does not at the same time
37-14    accept or receive a shipping document relating to the delivery;
37-15                (36)  transports motor fuel for which a cargo manifest
37-16    or shipping document is required to be carried without possessing
37-17    or exhibiting on demand by an officer authorized to make the demand
37-18    a cargo manifest or shipping document containing the information
37-19    required to be shown on the manifest or shipping document;
37-20                (37)  imports, sells, uses, distributes, or stores
37-21    motor fuel within this state on which the taxes imposed by this
37-22    chapter are owed but have not been first paid to or reported by the
37-23    holder of a distributor, supplier, liquefied gas dealer, interstate
37-24    trucker, diesel tax prepaid user, dyed diesel fuel bonded user, or
37-25    agricultural bonded user permit;
37-26                (38)  blends products together to produce a blended
 38-1    fuel that is offered for sale, sold, or used that expands the
 38-2    volume of the original product to evade paying applicable motor
 38-3    fuel taxes; or
 38-4                (39)  evades or attempts to evade in any manner a tax
 38-5    imposed on motor fuel by this chapter.
 38-6          SECTION 32.  Article 12.01, Code of Criminal Procedure, is
 38-7    amended to read as follows:
 38-8          Art. 12.01.  FELONIES.  Except as provided in Article 12.03,
 38-9    felony indictments may be presented within these limits, and not
38-10    afterward:
38-11                (1)  no limitation:  murder and manslaughter;
38-12                (2)  ten years from the date of the commission of the
38-13    offense:
38-14                      (A)  theft of any estate, real, personal or
38-15    mixed, by an executor, administrator, guardian or trustee, with
38-16    intent to defraud any creditor, heir, legatee, ward, distributee,
38-17    beneficiary or settlor of a trust interested in such estate;
38-18                      (B)  theft by a public servant of government
38-19    property over which he exercises control in his official capacity;
38-20                      (C)  forgery or the uttering, using or passing of
38-21    forged instruments; or
38-22                      (D)  indecency with a child under Section
38-23    21.11(a)(2), Penal Code;
38-24                (3)  seven years from the date of the commission of the
38-25    offense:
38-26                      (A)  misapplication of fiduciary property or
 39-1    property of a financial institution;
 39-2                      (B)  securing execution of document by deception;
 39-3    or
 39-4                      (C)  a violation under Sections 153.403(22)-(39),
 39-5    Tax Code;
 39-6                (4)  five years from the date of the commission of the
 39-7    offense:
 39-8                      (A)  theft, burglary, robbery;
 39-9                      (B)  arson; or
39-10                      (C)  sexual assault, except as provided in
39-11    Subsection (5) of this article;
39-12                (5)  ten years from the 18th birthday of the victim of
39-13    the offense:
39-14                      (A)  indecency with a child under Section
39-15    21.11(a)(1), Penal Code;
39-16                      (B)  sexual assault under Section 22.011(a)(2),
39-17    Penal Code;
39-18                      (C)  aggravated sexual assault under Section
39-19    22.021(a)(1)(B), Penal Code; or
39-20                (6)  three years from the date of the commission of the
39-21    offense:  all other felonies.
39-22          SECTION 33.  Subsections (b), (c), and (d), Section 153.404,
39-23    Tax Code, are amended to read as follows:
39-24          (b)  Each day that a refusal prohibited under Section
39-25    153.403(13), [153.403(12), (13), or] (14), or (15) [of this code]
39-26    continues is a separate offense.
 40-1          (c)  The prohibition under Section 153.403(32) [153.403(30)
 40-2    of this code] does not apply to the tax-free sale or distribution
 40-3    of diesel fuel authorized by Section 153.203(1), (2), or (5) [of
 40-4    this code].
 40-5          (d)  The prohibition under Section 153.403(33) [153.403(31)
 40-6    of this code] does not apply to the tax-free sale or distribution
 40-7    of gasoline under Section 153.104(2) or (4) [of this code].
 40-8          SECTION 34.  Section 153.405, Tax Code, is amended to read as
 40-9    follows:
40-10          Sec. 153.405.  CRIMINAL PENALTIES.  (a)  An offense under
40-11    Section 153.403(1), (2), (3), (4), (5), (6), [or] (7), or (8) [of
40-12    this code] is a Class C misdemeanor.
40-13          (b)  An offense under Section 153.403(9) [153.403(8), (9)],
40-14    (10), (11), (12), (13), (14), [or] (15), (16), (17), or (18) [of
40-15    this code] is a Class B misdemeanor.
40-16          (c)  An offense under Section 153.403(19), (20), or (21)
40-17    [153.403(16), (17), (18), or (19) of this code] is a Class A
40-18    misdemeanor.
40-19          (d)  An offense under Section 153.403(22) [153.403(20), (21),
40-20    (22)], (23), (24), (25), (26), [or] (27), (28), or (29) [of this
40-21    code] is a felony of the third degree.
40-22          (e)  An offense under Section 153.403(30) [153.403(28), (29),
40-23    (30)], (31), (32), [or] (33), (34), (35), (36), (37), (38), or (39)
40-24    [of this code] is a felony of the second degree.
40-25          (f)  Violations of three or more separate offenses under
40-26    Sections 153.403(22) [153.403(20)] through (29) [(27) of this code]
 41-1    committed pursuant to one scheme or continuous course of conduct
 41-2    may be considered as one offense and punished as a felony of the
 41-3    second degree.
 41-4          SECTION 35.  The change in law made by this Act does not
 41-5    apply to an offense if the prosecution of the offense became barred
 41-6    by limitation before the effective date of this Act.  The
 41-7    prosecution of that offense remains barred as though this Act had
 41-8    not taken effect.
 41-9          SECTION 36.  If Article 12.01, Code of Criminal Procedure, as
41-10    amended by this Act conflicts with Article 12.01 of that code, as
41-11    amended by S.B. No. 70, Acts of the 76th Legislature, Regular
41-12    Session, 1999, the change in law made by this Act to Article 12.01
41-13    controls over the change made by S.B. No. 70.
41-14          SECTION 37.  This Act takes effect September 1, 1999, and
41-15    applies to motor fuel that is imported or exported on or after that
41-16    date or on which the first sale occurs on or after that date.
41-17    Motor fuel imported or exported before that date or for which the
41-18    first sale occurs before that date is governed by the law in effect
41-19    when the motor fuel was imported, exported, or first sold, and that
41-20    law is continued in effect for that purpose.
41-21          SECTION 38.  The importance of this legislation and the
41-22    crowded condition of the calendars in both houses create an
41-23    emergency and an imperative public necessity that the
41-24    constitutional rule requiring bills to be read on three several
41-25    days in each house be suspended, and this rule is hereby suspended.